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Ripple (XRP) Overbought Reaches Levels, Price Faces Strong Rejection Short Term

Ripple (XRP) has reached overbought levels and the price is two for a heavy retracement short term. The daily chart for XRP / USD has been rejected at the 38.2% Fib Retracement Level. 23.6% Fib retracement level which will act as a weak support. The price can very well fall below that. So far, the chances of a breakout from the current levels appear very weak. 61.8% Fib retracement level.
The day has finally begun to break the 200 Day MA. The last time Ripple (XRP) attempted to break the 200 Day MA was back in November. It happened in October as well. All of these times, Ripple (XRP) failed miserably to make any breakthrough and price. 200 Day MA seems to have failed. If the conditions were different and XRP / USD had not already topped out, we might have had the attempt to have been successful. As the RSI for the daily chart shows, Ripple (XRP) is now in overbought territory and is being strengthened in the days ahead. This retracement has a small chance of dragging the price back to its annual low.

Chart for XRP / BTC (1D)
The most probable scenario for XRP / USD is a short term retracement that will be carried forward to the 10 Day EMA to complete the shoulder of the IH & S pattern. If this level fails to hold, then we can expect Ripple (XRP) to fall towards the 21 Day EMA. However, it is little to no chance that the price will end up breaking the 21 Day EMA because it will push Ripple (XRP) into another correction which we do not see happening at this point. For a long time now, Ripple (XRP) has been tweaked to get it up. The price is only going to the short term so that it can push the price towards $ 1 in early 2019.

Ripple (XRP) is perhaps the only cryptocurrency in the market that rallies as if it does not care about the predicament facing Bitcoin (BTC). It is not unusual for Ripple (XRP) to register double digit gains when Bitcoins (BTC) rises by a few percent. The recent rally resulted in Ripple (XRP) rising more than 20% just in the last 24 hours. This is the sort of trading behavior that puts Ripple (XRP) ahead of most other coins. Even if the price of ripple (XRP) retraces short term in dollar value, it is still significantly ahead of the cryptocurrencies at the beginning of a new rally.

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